US Sues Chicken Producers, Alleging They Conspired to Keep Wages Down
- Cargill, Sanderson to change how poultry growers are paid
- Deal comes days after $4.5 billion takeover of Sanderson
This article is for subscribers only.
US poultry producers Cargill Inc., Sanderson Farms Inc. and Wayne Farms LLC agreed to pay $84.8 million restitution for conspiring to lower wages for workers at chicken slaughterhouses as part of a settlement with the US Justice Department.
The US producers also agreed to changes in how they pay poultry growers under the proposed agreement, which requires court approval to be finalized. Cargill, Sanderson and Wayne Farms would be barred from cutting farmer pay based on performance and be required to offer growers more information on how they calculate compensation, while also being prohibited from sharing competitively sensitive information about plant workers’ compensation.